Public Chain Industry Annual Report 2024: Application Breakthroughs Leading New Directions for Development

2024 is a significant turning point for the public chain industry, with the focus shifting from technical competition to practical application. In this year, the market value of public chains grew by 105.3% to reach $2.8 trillion, and the price of Bitcoin surpassed the $100,000 mark, achieving institutional-level adoption through ETFs. The Ethereum Layer 2 network expanded to over 200 chains, and the Bitcoin Layer 2 TVL grew by 1,277.6%. These developments indicate that the industry is moving from the stage of technical experimentation to real-world applications.

Market Dynamics: Growth and Transformation

The public chain industry will achieve unprecedented growth in 2024, with multiple key indicators showing significant expansion.

The total market value of public chains increased by 105.3% to reach $2.8 trillion. Bitcoin's dominance rose to 69.8%, while Ethereum's share fell from 20.4% to 15.2%. The shares of BNB Chain and Solana remained stable at 3.5% and 3.3%, with other platforms accounting for 8.1%.

The DeFi sector is also showing strong growth momentum in 2024, with the total locked value ( TVL ) reaching $10.28 billion by the end of the year, a year-on-year increase of 88.6%. Among the top 10 public chains by TVL, Bitcoin and TON have the most significant growth, both exceeding 2,000%. Aptos, Sui, and Solana also performed well, with increases of 754.4%, 677.1%, and 321.3% respectively. However, the TVL of Tron and Avalanche has declined.

The Ethereum Layer 2 ecosystem experienced significant centralization trends in 2024. A certain trading platform maintained its leading position with a TVL of $10.6 billion and a market share of 41.1%, down from 50.8% in 2023. Base emerged as the dark horse of the year, jumping to second place with a TVL of $5.8 billion and a 22.5% share, while Optimism ranked third with a TVL of $4 billion and a 15.8% share. These three platforms together accounted for 79.1% of the Ethereum L2 DeFi TVL, while previous competitors like Blast, zkSync, and Starknet saw their market shares decline.

Meanwhile, the ecosystem continues to expand in scale, with 50 Rollups and 70 Validium & Optimium currently running on the mainnet, along with about 90 upcoming chains, bringing the total number of Ethereum L2s to over 200.

The Bitcoin Layer 2 and sidechain ecosystem has experienced explosive growth, with a total locked value (TVL) reaching $2.6 billion, a substantial increase of 1,277.6% compared to 2023. Core leads with a TVL of $790 million, capturing 30.3% market share, followed by Bitlayer with $150 million and a 19.4% share, and BSquared with $130 million and a 12.7% share. This growth is not only reflected in the TVL, but the number of active chains has also more than doubled over the year, currently totaling nearly 20 chains.

Competitive Landscape: Leaders and Challengers

In 2024, the competitive landscape of the public chain ecosystem has undergone significant changes, mainly reflected in the strengthening of Bitcoin's dominance, the resurgence of Solana, and the rise of emerging challengers.

( Bitcoin: From Store of Value to Financial Infrastructure

Bitcoin achieved remarkable growth in 2024, with a price increase of 129.2% and a market capitalization increase of 131.7%. This growth was driven by institutional adoption of spot ETFs, the halving event in April, and positive sentiment following the U.S. elections. In addition to breaking the $100,000 price milestone, there were two key developments in the Bitcoin ecosystem:

Institutional adoption enhancement: The successful issuance of spot ETFs in January has completely transformed the institutional access landscape, with a product from a certain asset management company rapidly reaching a scale of 20 billion USD. Bitcoin has surpassed silver and Saudi Aramco to become the world's seventh-largest asset, marking a shift from a speculative asset to a recognized store of value.

The Rise of BTCfi: The Bitcoin ecosystem has achieved expansion beyond price growth through innovative financial products. Babylon's Bitcoin staking project, Solv Protocol's cross-chain solutions, and Core's Fusion upgrade showcase the increasingly mature ecosystem. Cross-chain functionality has made progress through the integration of the BOB network with Optimism and the "Super Bitcoin" framework of BEVM, although standardization still faces challenges.

) Ethereum: Layer 2 Drives Ecological Evolution

2024 is a key year for Ethereum's transition to a Layer 2-centric ecosystem. Despite a price increase of 55.8% to $3,744, Ethereum faces complex challenges in repositioning its role and maintaining relevance in the context of growing Layer 2 adoption. The successful launch of spot ETFs in July gained some degree of institutional recognition, but Ethereum's price performance has notably lagged behind Bitcoin.

The Ethereum mainnet has achieved significant changes through the "Cancun upgrade," successfully reducing Layer 2 transaction costs and enhancing scalability. However, the migration of activities to Layer 2 has led to a decrease in transaction fee revenue for Ethereum itself, sparking discussions about the long-term sustainability of Ethereum. The Ethereum Foundation has responded with multiple initiatives, including the implementation of Proto-Danksharding(EIP-4844), the development of cross-L2 communication standards, and strengthening security requirements for Layer 2 solutions.

The Layer 2 ecosystem has shown significant growth and integration throughout the year. Notable newcomers have enriched the ecosystem, including World Chain, Unichain of a certain DEX, and Sony's Soneium. This evolution highlights Ethereum's transition from a pure execution layer to a diversified Layer 2 ecosystem provider of settlement and security. Although there are still questions about revenue models and competitive dynamics, Ethereum's continued development in developer activity and innovation in scaling solutions demonstrates its adaptability.

( Solana: The Third Giant

2024 witnessed a strong comeback for Solana, with a price increase of 70.8% and a market cap growth of 90.9%. In November, the coin price broke through $260, setting a new historical high. This revival began with the Jupiter airdrop in January, and the Solana ecosystem has been exceptionally active. Solana has established itself as a hub for retail trading, nurturing a vibrant meme and DeFi community. Beyond meme culture, Solana has made progress in several areas: re-staking protocols, modular Layer 2 solutions, and stablecoin innovation. The ecosystem has further extended its influence through the expansion of SVM chains such as Eclipse, Soon, Atlas, and Sonic.

) The Rise of Emerging Forces: TON, Sui, and Base

TON: Social Integration Drives Platform Growth

The Open Network (TON) exhibited significant growth in 2024, with the price of Toncoin rising by 149.6% and a market capitalization increase of 84.3%. The success of TON is mainly attributed to its deep integration with Telegram, effectively bridging the gap between traditional social networks and blockchain technology. The platform simplifies the crypto experience through Telegram wallet functionality and blockchain integration, providing millions of users with easy access to gaming, meme, and DeFi applications, establishing a model for large-scale adoption.

Sui: From Move Language Pioneer to Ecosystem Leader

Sui has shown outstanding performance, with its token price soaring 461.6% and market capitalization growing by 1,363.8%. This success reflects the market's confidence in the development of Move language technology and ecosystems. Sui focuses on the DeFi and gaming sectors, including the integration of Telegram games and the innovative development of the SuiPlay0X1 gaming console, demonstrating its comprehensive layout for ecosystem growth. The platform's emphasis on user experience and protocol development has created positive network effects, attracting the joint participation of developers and users.

Base: Institutional background drives rapid growth

The significant growth of Base is driven by several key factors. A certain trading platform has significantly lowered the entry barrier for mainstream users through its user-friendly smart wallet. The platform has gained substantial momentum from successful social applications like friend.tech and Clanker, while the popularity of memecoins has further boosted activities on the Base chain. The implementation of the "Cancun upgrade" has significantly reduced transaction fees, continuously enhancing Base's appeal to developers and users.

Major Trends in the Public Blockchain Industry in 2024

New chains are emerging endlessly

In 2024, project parties are launching their own public chains one after another. A certain DEX announced Unichain; the gaming platform Treasure DAO developed a ZK-based Layer 2; in the NFT field, Pudgy Penguins launched Abstract; the Web3 platform Galxe introduced Gravity. Moreover, the entry of innovative new chains such as Monad, Berachain, and HyperLiquid reflects the public chain industry's shift towards specialized blockchain infrastructure.

Institutional Adoption: From Exploration to Strategic Integration

The way institutions participate has changed

2024 marks a decisive shift for institutions from experimental blockchain initiatives to strategic implementation. Financial institutions are leading this transformation, with one asset management company's Bitcoin ETF quickly reaching a scale of $20 billion, and a payment platform expanding PYUSD to Solana. Tech giants are demonstrating deeper involvement through innovative approaches: Sony launched the Soneium chain for entertainment applications, while a certain tech company expanded its Web3 portal services. Infrastructure development is particularly noteworthy, with a stablecoin issuer launching native USDC on Sui and a payment company integrating Solana for settlements.

Institutional investment paradigm shift

The public chain sector is showing a strong recovery in 2024, with 174 financing events raising a total of $1.7 billion, an increase of 137.1% compared to last year. Notably, institutional investment strategies have shifted from pure infrastructure to application-oriented innovation. Early-stage investment events accounted for 21.4% of the total financing events, while Series A and B rounds accounted for 31.8%, reflecting the growing maturity of the ecosystem.

The investment philosophy of venture capital has undergone significant evolution, prioritizing user-oriented applications over traditional infrastructure development. This is reflected in the substantial investments in consumer-facing projects: Monad raised $225 million to optimize user experience, while Celestia and Berachain each secured $100 million for application-oriented infrastructure.

From technical competition to application innovation

The public chain industry experienced a fundamental shift in 2024, moving from a technology-driven to an application-driven strategy. This shift challenged the previous dominant industry mindset of "build first, users will come naturally." Despite significant improvements in technical capabilities, the increased network capacity has not directly translated into corresponding user growth. For example, although "hardware" is limited, the Ethereum base layer has a "users processed per second" that exceeds most Layer 2s, highlighting the complex relationship between technical capabilities and actual adoption.

This reality has prompted the ecosystem to make a strategic shift. Blockchain platforms are increasingly focusing on identifying specific user needs and building targeted solutions, rather than pursuing pure technological advancement. This "find the user and then build" approach is reflected in several successful initiatives. Social finance integration has become a particularly effective strategy, with TON's Telegram integration and Base's friend.tech demonstrating how familiar social platforms can drive blockchain adoption. By simplifying the user experience through account abstraction and familiar authentication methods, the entry barrier for mainstream users has been significantly lowered.

The evolution of meme culture in the blockchain space further reflects this shift towards application-oriented development. Initially pure speculative activities have evolved into effective user acquisition channels, particularly on platforms such as Solana and Base. These networks have successfully leveraged meme-related initiatives to drive ecosystem growth while fostering sustainable community engagement. The success of these user-centric approaches indicates that sustainable growth in the blockchain space increasingly relies on understanding and serving user needs, rather than solely advancing technological capabilities.

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Outlook for 2025

As the blockchain industry shifts from technological experimentation to practical implementation, 2025 is expected to be a significant year of transformation.

) Regulatory Clarity

The regulatory environment shows significant hope for improvement, especially in the United States. A clearer regulatory framework is expected to benefit the entire industry, particularly with the progress of stablecoin legislation. This regulatory clarity will promote institutional adoption of blockchain through the increase of regulated products and services, while also facilitating various jurisdictions.